Elnusa Petro operation "kills" suppliers
Monday, May 29 2000 - 04:00 AM WIB
Suppliers of oil and gas related activities in Riau province have complained over the operation of PT Elnusa Petro Teknik (EPT), saying that the establishment of the company by the Riau office of the state owned oil company Pertamina has undermined their existences, Riau Pos reported on Monday.
The chairman of the local chapter of the Indonesian Chamber of Commerce and Industry (Kadin), Adwin Malik, said over the weekend hundreds of suppliers involved in oil and gas related activities had been forced to close down due to the operation of the company.
"The number of oil-related suppliers has declined to about 150 from more than 800 before EPT was established," he said.
As part of restructuring program, Peramina established a new company two years ago, which was later known as PT Elnusa Petro Teknik (EPT), to handle goods procurement and maintenance for all oil and gas operations in Riau.
Before the operation of the company, Pertamina subcontracted the procurement and maintenance jobs to the local firms through an open tender. The local suppliers have several times protested the new procurement system but their protests left unabated. (*)